Posted on 06 Sep 2023
The global manufacturing Purchasing Managers' Index (PMI) has increased for the second month in August, rising by 0.4 percentage point from July to 48.3, according to the latest release by the China Federation of Logistics & Purchasing (CFLP) on Wednesday.
Despite its further rise, the index was still at a low level last month, reflecting the weak recovery of the global economy. Meanwhile, the overall tightening environment has not changed, and the pressure of demand contraction still exists, CFLP pointed out.
A PMI reading above 50 indicates expansion of the manufacturing sector, while a reading below 50 connotes contraction, Mysteel Global notes.
The European manufacturing PMI dipped by 0.1 percentage point on month to score 44.7 in August, marking its seventh on-month decline in a row and hovering below the threshold of 50 for 13 consecutive months, according to the release. "The risk of recession in Europe continues to increase with high-interest rates and weak exports hampering the economic recovery," CFLP noted.
In parallel, the U.S. PMI for its manufacturing sector gained 1.2 percentage points on month to 47.6 last month, showing an improvement in the country's manufacturing production, though demand in the country has not yet picked up significantly, according to CFLP.
The manufacturing PMI for Africa ended two months of declines in August, up 0.3 percentage point on month to 49.4, indicating that the downtrend in the African manufacturing sector has slowed, CFLP pointed out.
As for Asia, its manufacturing PMI scored 50.7 during August, rising for the second month by 0.2 percentage point on month and standing above the 50 mark for eight months. The federation concluded that the Asian manufacturing sector maintained steady growth last month.
Source:Mysteel Global
